Malacañang expressed optimism Tuesday that the country’s economy will recover in the last quarter of 2025, following reports of slower gross domestic product (GDP) growth due to recent typhoons and ongoing corruption investigations affecting government projects.
Presidential Communications Office (PCO) Undersecretary Claire Castro said the Marcos administration is banking on increased private holiday spending and stronger exports, supported by the government’s P1.307-trillion program budget, to boost growth.
“According to the Department of Budget and Management (DBM), we expect an improvement in GDP growth in the last quarter because of private holiday spending, government programs, and growth in exports,” Castro said.
“The President has directed that the P1.307-trillion budget be used properly so that the business sector sees government spending as responsible, helping boost consumption and investment,” she added.
The government’s announcement comes after the Philippine economy posted its lowest quarterly growth rate under the Marcos administration, with analysts attributing the slowdown to both corruption issues and the impact of recent natural disasters.
Castro noted that calamities and delays in project implementation contributed to the weaker performance, though she noted that a more detailed report from the economic managers is still forthcoming.
“Definitely, the recent calamities have slowed down economic growth,” she said.
“There is some effect from the flood control project investigations, but we will provide more details once the economic managers submit their report,” Castro added.
Asked if the economic team had submitted a catch-up plan to accelerate government spending, Castro said President Ferdinand “Bongbong” Marcos Jr. had already instructed agencies to maximize the remaining budget for the year.
“The President has ordered proper and efficient use of the remaining funds to help stimulate economic activity,” she added.
Despite the headwinds, economic managers remain confident that the economy will regain momentum in the final quarter of 2025 as public spending ramps up and reconstruction efforts in typhoon-hit areas continue.
